Provision of non audit services by audit firms

The Working Group was set up following
the publication of the APB Consultation Paper "Consultation on audit firms
providing non-audit services to listed companies that they audit" on 6
October 2009.

The Working Group was composed of representatives from investors,
listed companies, audit firms and academia. The Working Group concluded
following debate, research and communication that there is no benefit to be
gained from a complete prohibition on auditors providing non-audit services to
their listed clients.

An overview of the debate, research and communication
findings is included in the report. The Working Group also concluded that there
are areas for improved disclosure, transparency and governance around the
subject of non-audit fees and, in particular, policy, procedures and disclosure.